Important Strategy for Intraday Trading-Money Classic Research

Different people use
different types of Strategy for Trading in Intraday market. The technical
analysis is an important tool for analyzing the price movements of Stocks in
the Stock Market. The concept of trend and supports and resistances
are at the core of the technical analysis.

The support is a point
at which the market approach from the top and reverse back after touching the
levels. Similarly the resistance is the price level at which the market
approach from the bottom and touch the level and again reverse and go down. The
traders put the buy call at supports and sell calls at resistances. At the
support there are chances that the market will reverse and go up and at the
resistances the market is anticipated to go down. Thus the supports and
resistances can be used to determine the levels at which appropriate buy and
sell calls can be placed. In case of IntradayTrading the previous day’s high and low can be taken as resistance and
support for the next day.

The support and
resistances can be traded with the help of candle stick patterns. If the candle
sticks patterns showing the trend reversals are formed near supports and
resistances. For example if a doji Candle is formed near the support there are
high chances that the trend will reverse. Similarly if the trend reversal
candle sticks are formed near resistances there are high chances that the trend
will reverse.

The concept of trend is
also important in day trading. The trader should always follow the current trend.
The trader should trade with the trend and not against the trend. The advisory firms like Money Classic Research also use the
above tactics to generate Stock market Tips. Accurate Intraday trading tips and
equity tips can be generated using
the above mentioned strategies.